Research On The Influence Of The "Three Important And One Big" System On The Stock Price Stability Of State-owned Enterprises

Numerous financial studies have found that stock returns are distributed asymmetrically,meaning that the biggest stock moves tend to be plunges,not booms.Therefore,maintaining the stability of stock prices has become a crucial factor for the sustainable and stable development of a country or region’s capital market.The internal operation of the company will directly or indirectly affect the stock price of individual stocks.Therefore,in order to prevent the large fluctuation of the stock price from adversely affecting the market,it is particularly important to study the internal operation of the company.As an important source of corporate value creation,investment activities are strategic decisions of the company and play a key role in the development of the company.As the leader of the company’s strategic decision-making,managers will directly affect the company’s investment behavior.Existing studies have found that the risk of stock price plummeting is largely affected by corporate governance,and the multi-level agency relationship formed by state-owned enterprises in the process of development has led to difficulties in information transmission and low supervision efficiency.In addition,my country’s special economic system The market competitive advantage brought to state-owned enterprises leads to rent-seeking behavior of managers,which significantly exacerbates the risk of plummeting share prices of state-owned enterprises.As an important part of my country’s capital market,state-owned enterprises are huge in size.It can be said that their management effectiveness in the capital market is of great significance to promoting the healthy and stable development of my country’s capital market.To this end,this paper relies on the theory of hidden bad news,government intervention theory,bounded rationality theory and principal-agent theory,based on the implementation background of the "three important and one big" system,using the data of Shanghai and Shenzhen A-share listed companies from 2007 to 2014,using DID double difference The model studies the impact and mechanism of the "three important and one big" institutional opinions on the stock price stability of state-owned enterprises.Through research and analysis,it is concluded that after the implementation of the "three important and one big" system,the stock price stability of state-owned enterprises has changed significantly compared with non-state-owned enterprises that are not subject to the system’s opinions.Through empirical analysis,the following conclusions are drawn: the "three important and one big" opinions mainly play a role in maintaining the stability of stock prices and promoting the steady growth of stock prices through channels such as improving the internal control quality of state-owned enterprises,improving the investment efficiency of state-owned enterprises,and restraining the asymmetric disclosure of good and bad news within state-owned enterprises.effect.(1)The implementation of the "three important and one big" system can effectively improve the stock price stability of state-owned enterprises.(2)The implementation of the "three important and one big" system can effectively improve the stability of the stock price of enterprises by improving the inefficient investment of enterprises.(3)The impact of the "three important and one big" system on the stock price stability of state-owned enterprises varies among enterprises of different natures.It is manifested in that the effect on the enterprises controlled by the local government is significantly greater than that of the enterprises controlled by the central government.At the same time,the enterprises with poor internal control of the enterprises are significantly higher than the enterprises with good internal control.Based on the research results,this paper summarizes the following inspirations:On the one hand,as far as government management departments are concerned:(1)Further promote the implementation of the "three important and one big" system in the daily decision-making of state-owned enterprises.(2)Pay different attention to enterprises of different natures,and pay attention to the investment behavior of state-owned enterprises.(3)In the process of deepening the reform of state-owned enterprises,further promotion and improvement of the construction of the internal management system of state-owned enterprises may be considered.On the other hand,as far as state-owned enterprises are concerned:(1)It is necessary to correctly understand the management core of the "three important and one big" formula,and formulate corresponding systems and rules to standardize and ensure the effective operation of the decision-making mechanism.(2)Enterprises of different natures should,on the basis of implementing the basic requirements of the "three important and one big" system,fully explore the implementation methods of major decision-making management and control according to their own conditions.(3)Pay attention to the investment behavior of enterprises,such as the negative impact of inefficient investment of enterprises on stock price performance.The above research conclusions not only provide empirical evidence at the micro level for objectively evaluating the actual implementation effect of the "three important and one big" opinions,but also provide new ideas for further deepening the reform of state-owned enterprises.